Econ chapter 6
Based on the information above, the principal amount from which Bill earns interest for the second year is
$1,050
Based the information above, which of these represents the NOMINAL interest earned on Gina's account
$40
Which of these statements about interest rates is TRUE
Interest rates compensate lenders for postponing consumption of the money loaned
Based the information above, which of these represents the REAL interest earned on Gina's account
about $40
An economist would probably state that interest rates compensate lenders for
forgoing the consumption of money loaned
A transfer payment is best described as
money received for which no productive service was performed
Which of the following most accurately expresses the relationship between REAL and NOMINAL interest rates
nominal interest rate = real interest divided by inflation over the prior year
Based on the information above, the principal amount from which Bill earns interest for the second year is
none of the above
A corporation's stockholders are probably best described as the company's
owners
The principal amount of a loan is BEST described as
the average payment required to pay off the loan in one year
The owners of the General Motors Corporation are probably most accurately described as people who
who hold shares of the company's stock
